High Asset

DigitalBridge to buy Telenet’s tower business for €745m

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DigitalBridge has agreed to buy the mobile telecommunications tower business (TowerCo) of Belgian broadband services firm Telenet in a €745m deal.

The acquisition gives DigitalBridge full ownership of Telenet’s passive infrastructure and tower assets, including TowerCo’s nationwide footprint of 3,322 sites in Belgium, including 2,158 owned sites and 1,164 third-party sites.

As part of the deal, DigitalBridge will enter into a long-term lease agreement with Telenet, which includes an initial period of 15 years and two renewals of 10 years each.

The agreement also includes a build-to-suit commitment to deploy a minimum of 475 additional new sites, DigitalBridge said.

The NYSE-listed global digital infrastructure real estate investment trust (REIT) said the all-cash acquisition – which is a cash-free and debt-free basis – will be funded via a combination of debt and equity financing, including a commitment from the DigitalBridge balance sheet of €470m.

Marc Ganzi, president and CEO of DigitalBridge, said: “Telenet’s tower business is a high-quality digital infrastructure asset with stable, predictable cashflows, high cash conversion, and long-term contracts.

“This transaction is the latest example of DigitalBridge’s commitment to working with leading telecom and technology companies globally to help them unlock embedded value in their networks via creative solutions built on long-standing relationships and a proven track record of successfully operating assets.

“We see significant headroom for growth in the Belgian telecom market through the enhancement of mobile penetration and data usage, and we look forward to meeting and exceeding Telenet’s increased coverage needs.”

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